Tsingtao Beer Invests CNY600 Million For New Project In Shijiazhuang

To enhance its competitiveness in Beijing, China's Tsingtao Beer will invest CNY600 million to build a new brewery project in Shijiazhuang, capital of Hebei province.

Tsingtao Beer has signed an agreement with the management committee of Shijiazhuang Economic and Technological Development Zone to build the new manufacturing base in this zone. With a planned area of 300 mu, the new project will reportedly have an annual capacity of 400,000 kiloliters of beer and will become a top-level modern brewery in China. The project will start construction in June 2010 and is expected to be completed in June 2011. On its completion, the new plant will make both Tsingtao Beer and Laoshan Beer, another brand owned by the company, in Shijiazhuang.

An executive from Tsingtao Beer told local media that the new project will be the company's 54th manufacturing base and also a comparatively large one. In addition, for strategic layout, Tsingtao Beer currently has no plant in the southern areas of Hebei, but the new one in Shijiazhuang will be a good link between its plants in Beijing and Langfang.

Statistics provided by Tsingtao Beer show that the company's revenue from major businesses was CNY4.141 billion in the first quarter of 2010, a year-on-year increase of 8.59%; its total profit was CNY418 million, a year-on-year increase of 49.34%; and its net profit was CNY285 million, a year-on-year increase of 42.72%.